How to Obtain a Business License in KSA & as a Foreigner?

With its cutting-edge infrastructure, strong consumer base, and strategic location, the Kingdom of Saudi Arabia (KSA) has become a hub for entrepreneurs and investors looking to tap into the Middle East and beyond. For foreign investors, obtaining a business license in KSA is the essential first step to establishing a successful presence in this promising market.

In this guide, we’ll break down everything you need to know about securing a business license as a foreigner, including the types of licenses available, their specific requirements, the benefits of licensing, and associated costs. Whether you're an international entrepreneur or a company looking to expand into KSA, this guide will provide the clarity and insights you need to navigate the licensing process effectively.

Why Obtaining a Business Licence in KSA is Essential?

Saudi Arabia is the fastest-growing economy in the Middle East, offering advanced infrastructure, strong purchasing power, a prime location for exports, and access to a globally diverse, highly skilled workforce.

The Kingdom has become the top destination for foreign investment in the region, thanks to government-backed programs and initiatives designed to support the private sector’s growth and success.

Acquiring a business license is essential to start a business in Saudi Arabia. It grants you access to the market and allows you to enter into contracts, secure business deals, and take full advantage of the government’s supportive measures.

Additionally, a business license is crucial for hiring skilled employees for your project or attracting investors to fund your startup. It legitimizes your operations, ensuring you can conduct business legally while safeguarding your brand.

Benefits of Business Licence in Saudi Arabia:

1. Bank Accounts: A business license is essential for opening a bank account in Saudi Arabia, enabling you to manage your funds and facilitate money transfers easily.
2. Tax Benefits: In certain cases, having a business license in Saudi Arabia can entitle you to specific tax benefits and incentives, making it a valuable asset for cost-effective operations.
3. Government Support: Licensed businesses may qualify for government support programs, such as funding or subsidies, to help foster growth and sustainability.

Therefore, a business license in Saudi Arabia is not just a formal step, but it’s a strategic move that unlocks opportunities, enhances your business’s legitimacy, and positions you for sustainable growth in one of the world’s fastest-growing economies.

Types of Business Licences in Saudi Arabia for Foreigners:

There are large varieties of business licenses in KSA, you must obtain one based on your business industry as follows:

1. Agricultural Licence: Designed for businesses involved in farming, breeding livestock, or fisheries. If your work is in agriculture, this license is for you.
2. Commercial Licence: A broad category suitable for companies involved in distribution, importing and exporting, or general trading activities.
3. Professional Licence: Ideal for individuals working independently in professions like doctors, lawyers, engineers, or consultants.
4. Industrial Licence: Tailored for manufacturing companies and assembly factories.
5. Entrepreneur Licence: Perfect for start-ups or small business owners looking to establish their venture.
6. Mining Licence: Required for activities related to exploring or extracting minerals.
7. Real Estate Licence: Necessary for anyone involved in real estate activities such as property development, brokerage, or property management.
8. Printing and Publishing Licence: This license is needed if your work involves printed materials such as magazines, books, newspapers, or advertising content.
9. Audiovisual Media Licence: Designed for those creating content like TV series, movies, documentaries, streaming services, or any broadcasting activities.
10. Transport Licence: Essential for businesses engaged in shipping via road, air, or sea.
11. Regional Headquarters Licence: If you’re planning to move or establish your regional headquarters in Saudi Arabia to oversee operations in the MENA region, this is the license for you.
12. Services Licence: For businesses providing professional services across various industries.
13. Scientific and Technical Office Licence: Similar to the services' license but specifically for specialized scientific and technical services or research canters.

And now to the most important question…

How to Obtain a Saudi Business Licence?

Getting a business license in Saudi Arabia on your own can be a daunting process, but with a specialized and experienced law firm, you will guarantee an error-free path for issuing any type of business license discussed in the previous section.

Introducing Sadany & Khalifa, a leading law firm specializing in business formation and licensing in Saudi Arabia. When you partner with their experienced team to secure your desired business license in the Kingdom, they will manage the entire process seamlessly on your behalf.

From handling documentation to obtaining necessary approvals, their experts ensure a smooth and efficient journey through the following steps:

Step 1: Develop a Business Plan and Define Legal Structure

After determining your business type, they will choose the suitable business license for you to obtain and define the legal structure for ownership.

Step 2: Gather Required Documents

Such as passports, visas, proof of address, financial statements, feasibility studies, and any documentation for proof of capital.

Step 3: Secure Local Sponsorship (if required)

If your business requires a local sponsorship, they will draft and define the terms for a formal local sponsor agreement and help you find one if you don’t.

Step 4: Obtain Approvals from Relevant Authorities

We will get you all kinds of approvals from labor office approval, to General authority for investment, free zones, industrial development authority, customs, NTRA, local chamber of commerce, municipal license, General Authority of Zakat and Tax (GAZT) to obtain a tax registration, ministry of tourism, sports, education, health electricity, etc....

Step 5: Choose and Register a Commercial Space

We can help you to search for the right premises that comply with the regulations and are suitable for your target audience and get location approval from a municipality for your business location.

With Sadany & Khalifa managing your business licensing process, you can focus on your vision while they ensure every step is completed efficiently and professionally. 

Get started today and launch your business in Saudi Arabia with confidence!

Read More on: Saudi Commercial Register Law

Business Licence Renewal, Cancellation, Cost and Time:

How to obtain a business license in KSA always comes with questions about the renewal, cancellation, cost, and time to get it.

• Renewal Requirements for Business License in Saudi Arabia

Any business license in Saudi Arabia is valid for one year and must be renewed each year with a verification of your business, providing any updated documents, and paying the renewal fees after registering for renewal.

• How to Cancel Your Business License?

There are several reasons for cancelling the business license in KSA, including business closure and transfer of ownership, so you must consult and follow up with your legal advisors to ensure compliance with regulations to avoid any reason that may cause losing your license.

• Cost of Obtaining a Business Licence in KSA

The cost of obtaining a business license in KSA varies depending on several factors, including the type of business, location, and requirements. However, you can initiate your business in KSA with a cost starting from 4 figures to 5 figures of Saudi Riyals, which is very reasonable and affordable.

The fees will cover:

• Government Fees
• Office Rental
• Initial inventory
• Law Firm Fees

• Estimated Timeline for Completion

The process of obtaining a business license in Saudi Arabia can be lengthy and complex. However, with Sadany & Khalifa Law Firm, their extensive connections, expertise, and streamlined approach ensure the process is completed efficiently, allowing you to start operations without unnecessary delays.

Conclusion:

Finally, we have come to the end of this rich article that went through all the business license types in Saudi Arabia, why you must obtain a license, the benefits of it, the cost, the timeline, and of course the ideal partner that can help you issue your license in the kingdom and start your action, give us a call and let’s get started.

Call us now at (20) 1069460940 to get started!

FAQ

• How Much is 5 Years for a Driving licence in Saudi Arabia?

200 SR for 5 year driving license, 400 SR for a 10-year licence and 20 SR fee for the application form.

• How Much is The Fee for Iqama Renewal 2024?

650 to 800 SR annually

• How Much is Saudi Permanent Residency?

800000 SR as one-time for unlimited premium residency in Saudi Arabia

• How Many Years Iqama Will Expire?

One year and can be renewed for the same perio